Can a restaurant charge a no-show fee in Oregon, New Hampshire or Arizona?

A table that does not show up costs a restaurant real money: food ordered, staff scheduled, other guests turned away. Many independent restaurants now ask for a card to hold a reservation and charge a fee when a party does not appear. Here is how to do that fairly and in a way that stands up if a guest disputes the charge, for restaurants in Oregon, New Hampshire and Arizona. None of those states has a statute written for restaurant no-show fees, so general consumer protection law applies. Ask your lawyer whether a fee you plan is reasonable.

Is a no-show fee legal in these states?

Generally yes, if it is clearly disclosed in advance, the guest agrees to it and the amount is reasonable. No restaurant-specific no-show statute applies, so ask your lawyer whether a state or local rule touches your fee. What applies in any case is each state's consumer protection law against unfair or deceptive practices: Oregon's Unlawful Trade Practices Act, New Hampshire's Consumer Protection Act (RSA 358-A) and Arizona's Consumer Fraud Act. In practice, that means your policy must be stated plainly before the guest commits, must not surprise them and must not be applied selectively. Confirm the current rules with your lawyer or trade association.

What does disclosure before booking look like?

The guest should see the fee, the amount, the cutoff and the exceptions before they confirm the booking. Put the policy on the reservation page, in the confirmation message and in a reminder. Use plain words: "A $15 per person fee applies if you cancel less than 24 hours before your reservation or do not arrive." Do not bury it in a long terms page. If you take bookings by phone, read the policy aloud and send it in writing. A reservation platform's own help page for charging a cancellation or no-show fee describes the same steps: set the policy, collect a card at booking and charge it only when the policy applies.

How does card-on-file consent work?

A no-show charge is a charge you initiate later on a card the guest gave you at booking. Payment processors describe it as a merchant-initiated transaction that rests on the customer's agreement to the terms at the time of booking. That means you need to capture clear consent: a checkbox or a button that says the guest agrees to the cancellation policy and authorizes the charge, with the text saved. Card network rules for no-show charges are written mainly for hotels, so ask your processor what applies to a restaurant and what evidence it wants if a guest disputes the charge.

How much can you charge?

Choose an amount that reflects your real loss and that a reasonable guest would accept. Many restaurants charge a flat amount per person for peak times, and a deposit that is credited to the bill for tasting menus or holidays. A fee that is plainly larger than the cost of the empty table invites disputes and complaints. Consider lower amounts for small parties and a higher amount for large groups, where one no-show leaves many seats empty. Whatever you choose, apply it the same way to everyone.

When should you waive it?

Use judgment. Illness, a death in the family, a flight cancellation or a storm that closes roads are the kinds of events where a waiver builds goodwill. Many restaurants waive the first offense for a regular guest and keep a note. Write down your waiver rules, such as emergencies with a reasonable explanation, so staff treat guests consistently. Never waive for one guest and refuse the same circumstance for another.

How do you handle disputes?

Keep records for every charge: the booking confirmation with the policy, the guest's consent, timestamps for any cancellation request, the reservation log showing the party did not arrive and any messages. If a guest disputes the charge with their bank, send this evidence promptly. Answer guest complaints politely and quickly. If a charge was made in error, refund it at once. A public review that says "they charged me unfairly" can cost more than the fee.

Do taxes apply to a no-show fee?

It depends on the state and how the fee is described. Oregon has no sales tax. New Hampshire taxes meals, and Arizona taxes restaurant sales under transaction privilege tax; whether a no-show fee, which is not a meal, is taxable should be confirmed with the state revenue department or your accountant. A deposit that is credited to the final bill is treated differently from a fee for a table not used. Ask before you write the policy.

What else reduces no-shows?

A fee is a last resort. Reminders by text or email a day and a few hours before the booking, a simple one-click way to cancel, a waitlist to refill canceled tables, and calling to confirm large parties all reduce no-shows without charging anyone. Track no-show rates by day and party size; a pattern helps you decide where to require a card and where not to. For many neighborhood restaurants, a clear policy plus reminders is enough.

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• Can a restaurant ask for reviews? The FTC fake review rule explained
• Online ordering for restaurants in Oregon, New Hampshire and Arizona
• Card surcharge or cash discount for a restaurant: how to choose (2026)

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